In October 2014 the minimum wage will rise from £6.31 to £6.50 for workers over 21. The rate for 18 to 20 year-olds will go up by 10p to £5.13 an hour, for those aged 16 and 17 will rise by 7p to £3.79 and apprentices will earn an extra 5p an hour, taking their wages to at least £2.73.
According to the government the new rate will benefit a million workers. It will be the first time in six years that the minimum wage has increased above the rate of inflation. This may appear to be good news and of course for many workers in low paid roles it clearly is but it isn’t necessarily good news for everyone and it will certainly have an impact on many businesses and their wage bills.
The rise will also have implications for recruitment agencies, umbrella companies and their clients too. Some contractors who are employed by an umbrella company and are working at a rate close to the minimum wage may be affected. This is because the proportion of their pay which is taxable may increase.
In light of this we are increasing our minimum hourly rate from £8 to £8.28 on the 1st October.
If you think you might be affected by the change to the minimum wage or the increase in our minimum hourly rate please give your account manager a call to discuss any concerns you may have. Tel 01244 500195
